Portugal D7 Passive Income Visa

Overview

The D7 Visa (Passive Income Visa or Retirement Visa) is one of Portugal's most popular long-stay visas. It allows non-EU nationals who can demonstrate a stable, regular income (whether from pensions, rental income, dividends, investments, or remote employment) to reside in Portugal legally.

Portugal's appeal for Israeli expats comes down to a few concrete factors: lower cost of living than Israel and Western Europe, a growing English-speaking expat community, year-round warm climate, EU access, and favorable tax treatment under the NHR regime.

Who qualifies

You qualify for a D7 visa if you:

• Are a non-EU/EEA national
• Can demonstrate a minimum monthly income of €820/month (the Portuguese minimum wage, updated annually). The threshold increases for family members: +50% for a spouse/partner, +30% per dependent child.
• Have a place of residence in Portugal (rental contract or property ownership)
• Hold valid health insurance covering Portugal
• Have a clean criminal record (apostilled from Israel)
• Do not intend to work for a Portuguese employer (remote work for foreign clients is permitted)

Income types that qualify

• Pension (private or state, including Israeli pension transferred abroad)
• Rental income from property (in any country)
• Dividends and investment income
• Remote work income from a foreign employer or clients
• Passive business income (royalties, licensing fees)

Steps

1. Open a Portuguese bank account — Required before applying. Most banks require an in-person visit; some accept online applications for non-residents. You will need your NIF (Portuguese tax number) first.
2. Get your NIF — Apply remotely through a Portuguese tax representative, or in person at a Finanças office during a preliminary visit to Portugal.
3. Secure accommodation — A rental contract or property purchase deed. Must be for at least 12 months.
4. Gather documents:
   • Proof of income (bank statements, pension letters, employment contracts with foreign employer, rental agreements)
   • Portuguese bank account statement
   • NIF certificate
   • Rental contract or property deed in Portugal
   • Health insurance certificate valid in Portugal
   • Criminal background check from Israel (apostilled)
   • Passport (valid for 6 months beyond the visa period)
5. Apply at the Portuguese Consulate in Tel Aviv (for the D7 national visa, valid 4 months + 1 extension to convert in Portugal)
6. Processing time: 2–4 months
7. Enter Portugal and within the visa validity, apply at AIMA (the new immigration authority, replacing SEF) for a Residency Permit
8. Residency permit issued for 2 years initially, renewable for 3 more years

Non-Habitual Resident (NHR) Tax Regime

Portugal's NHR regime historically offered a 10-year flat tax benefit for new residents. The regime was reformed in 2024:

• The classic NHR (20% flat rate for qualifying Portuguese-source income, exemption for most foreign income) was replaced by IFICI (Incentivo Fiscal à Investigação Científica e Inovação) for new applicants from 2024 onward.
• Existing NHR holders retain their status until 10 years have elapsed.
• The new IFICI targets researchers, tech workers, and startup founders.

For D7 holders who are retirees or have passive income: standard Portuguese progressive income tax applies (up to 48%). For Israeli pensioners, the Portugal-Israel Double Tax Treaty may reduce withholding on Israeli pension income.

Costs

• D7 visa fee: €90
• AIMA residency permit application: €83
• Residency permit issuance: €72
• NIF registration: free (or €150–€300 via representative)
• Health insurance: €500–€1,500/year depending on age

Path to permanent residency

• After 5 years of legal residence: apply for permanent residency (Autorização de Residência Permanente)
• After 5 years of residence: eligible to apply for Portuguese citizenship (one of the shortest citizenship timelines in the EU)
• Portuguese citizenship = EU citizenship, including the right to live and work in all 27 EU member states